NH - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.6

📊 Chart Patterns: NH is trading at 1,926 ₹, above both its 50 DMA (1,868 ₹) and 200 DMA (1,759 ₹). The chart shows an overall uptrend with minor corrections from the 52-week high (2,372 ₹).

📈 Moving Averages: Current price is comfortably above long-term averages, confirming bullish sentiment. Sustaining above 1,900 ₹ strengthens the trend.

📉 RSI: At 42.7, RSI is neutral, suggesting consolidation with room for upward movement.

📊 MACD: Slightly negative (-0.38), indicating mild short-term weakness but no strong bearish crossover.

📊 Bollinger Bands: Price is near the mid-band, showing consolidation with potential breakout if volumes rise.

📊 Volume Trends: Current volume (2.71 lakh) is in line with average weekly volume (2.69 lakh), suggesting stable participation.

📍 Momentum Signals: Short-term momentum is consolidating. RSI and MACD suggest sideways movement before a possible breakout.

🎯 Entry Zone: 1,880–1,920 ₹ (near 50 DMA support). Good accumulation zone for traders.

🎯 Exit Zone: 2,050–2,100 ₹ (intermediate resistance). Strong resistance at 2,372 ₹ (52-week high).

🔎 Trend Status: The stock is consolidating after a strong rally, with potential to resume upward trend if it breaks above resistance.

Positive

• Strong ROCE (19.4%) and ROE (21.0%) indicate efficient capital use.
• Quarterly PAT improved significantly (138 Cr. vs 87.4 Cr.), showing growth (+30.6%).
• EPS of 22.7 ₹ supports valuation strength.
• Trading above both 50 DMA and 200 DMA confirms bullish structure.

Limitation

• High P/E (84.7) compared to industry average (51.8), indicating overvaluation risk.
• Low dividend yield (0.24%) reduces income appeal.
• Debt-to-equity ratio at 0.69 is moderate but higher than ideal.
• MACD slightly negative, showing short-term weakness.

Company Negative News

• DII holdings declined (-0.33%).
• Stock corrected from 2,372 ₹ to 1,926 ₹.

Company Positive News

• FII holdings increased slightly (+0.03%).
• Quarterly PAT surged (+30.6%).
• Strong EPS growth supports investor confidence.

Industry

• Industry PE is 51.8, lower than NH’s 84.7, suggesting premium valuation.
• Healthcare sector remains defensive with long-term growth potential.

Conclusion

✅ NH is consolidating near support levels after a strong rally. Fundamentals show profitability and efficiency, but high valuation and moderate debt limit upside. Traders may consider entries near 1,880–1,920 ₹ with exits around 2,050–2,100 ₹. Long-term investors should monitor earnings growth and wait for a breakout above 2,100 ₹ for sustained upward momentum.